Pacic developing member countries (DMCs) are highly dependent on imported fossil fuel for their electricity generation. Te cost of importing fuel is high and volatile; this puts a major strain on the resources of countries, and threatens the sustainability of their growth and development. Meanwhile, in several countries in the Pacic region, the proportion of households with access to electricity is extremely low, some as little as 10%. Te Asian Development Bank (ADB) focuses on three strategic areas in the energy sector in the Pacic DMCs: improving the eﬃ ciency of electricity generation and use, expanding access to electricity by households, and supporting conversion to renewable sources of energy. Accordingly, ADB’s objectives in the Pacic DMCs include:
Rehabilitating existing infrastructure
. Major improvements to old and ineﬃ cient equipment can be undertaken to achieve supply-side eﬃ ciency at the least cost. Examples include the replacement of ineﬃ cient generator sets, resizing of transformers, and retrotting of overhead line conductors.
Improving access to electricity
. ADB is expanding electricity grids in unserved areas and helping communities to use the new source of energy in their livelihood chores, learning in schools , and getting treatment in health care facilities.
Supporting conversion to renewable energy
. Reliance on imported fossil fuels can be reduced by generating power from renewable sources. Tis is particularly true in the Pacic region where cost competitive renewable energy technologies are being implemented. ADB is piloting and upscaling technologies, such as a small-scale hydropower; grid-connected solar power; indigenous biofuels; and wind power.
Supporting energy eﬃ ciency
. Improving the eﬃ ciency of energy use by customers oﬀers signicant potential for fuel savings. Trough its agship program, Promoting Energy Eﬃ ciency in the Pacic, ADB is providing support to a range of initiatives including Minimum Energy Performance Standards for appliances, public awareness raising, and eﬃ cient lighting and buildings.
Developing the private sector
. Private sector involvement in the power sector in the Pacic region is important to help overcome the constraints faced by governments due to limited capital and technical capacity. ADB is helping to establish appropriate regulatory frameworks to foster private sector participation in the power sector and increase government capacity in managing private sector contracts. ADB is also improving access to international carbon nance through the Clean Development Mechanism (CDM). Examples of these initiatives across the region are detailed in the following sections. Tis update is produced annually by ADB’s Pacic Department.